Azerbaijan : Power Distribution Enhancement Investment Program

Sovereign Project | 42401-014

The Power Distribution Enhancement Investment Program (the Investment Program) aims to support the government's efforts in providing reliable and efficient power supply to meet its growing energy needs for inclusive development, especially in secondary cities and rural areas. Through rehabilitation and augmentation of the power distribution network throughout the country, the investment program will improve power supply reliability and efficiency, and support the improvement of operational and financial performance of the state-owned power distribution company, Azerishiq Open Joint-Stock Company (OJSC).

Project Details

  • Project Officer
    Tareen, Adnan
    Central and West Asia Department
    Request for information
  • Country/Economy
    Azerbaijan
  • Modality
  • Sector
    • Energy
Project Name
Power Distribution Enhancement Investment Program
Project Number
42401-014
Country / Economy
  • Azerbaijan
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
MFF Facility Concept 0091-AZE: MFF Power Distribution Enhancement Investment Program
Source Amount
Ordinary capital resources US$ 750.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
Sector / Subsector
  • Energy / Electricity transmission and distribution - Energy efficiency and conservation

Gender
Some gender elements
Description
The Power Distribution Enhancement Investment Program (the Investment Program) aims to support the government's efforts in providing reliable and efficient power supply to meet its growing energy needs for inclusive development, especially in secondary cities and rural areas. Through rehabilitation and augmentation of the power distribution network throughout the country, the investment program will improve power supply reliability and efficiency, and support the improvement of operational and financial performance of the state-owned power distribution company, Azerishiq Open Joint-Stock Company (OJSC).
Project Rationale and Linkage to Country/Regional Strategy
A multitranche financing facility (MFF) is proposed for the Investment Program, which will allow ADB to establish a stronger long-term partnership with the government meeting its development goals, support energy sector reform, improve energy policies, and strengthen governance and capacities. The Investment Program has the following key benefits: (i) support to the government in achieving its strategic development targets, (ii) introduction of modern technology and improvements in energy efficiency, (iii) support to Azerishiq OJSC to improve corporate governance and transparency, (iv) knowledge and skills transfer via the training of power utility staff to international standards in the implementation of the latest technology, and (v) improving electricity supply service quality and enhancing productivity of small- and medium-sized enterprises. The investment program will benefit 1.45 million customers, of which 60% are residential customers.
Impact

increased availability of reliable electricity supply to all domestic consumers.

Project Outcome

Description of Outcome

improved efficiency and reliability of the power distribution networks.

Progress Toward Outcome
In Q3 2017, the rehabilitation of 110/35/10 kV substations were completed, and these were energized. Physical works on other contracts (substation rehabilitation of 35/10 kV substations is 60% completed; works on distribution lines and installation of meters) are in progress.

Implementation Progress

Description of Project Outputs

Customer services lines rehabilitated and smart meters installed and operational

Distribution network including distribution lines and substations rehabilitated, augmented, and functional

Institutional capacity improved and corporate reform achieved

Status of Implementation Progress (Outputs, Activities, and Issues)

In progress.

In progress.

In progress.

In progress.

Construction works for 110/35 kV substations completed and energized. The rest of rehabilitation works are in progress.

Works are in progress.

Geographical Location
Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
No major environmental safeguards issues are envisaged under the investment program.
Involuntary Resettlement
No major social safeguards issues are envisaged under the investment program.
Indigenous Peoples
No indigenous peoples will be affected by the investment program.

Stakeholder Communication, Participation, and Consultation

During Project Design
Series of public consultation including focus group discussions covering 6 districts of Soumgayit regency were conducted in the months of February to April 2010 in the strategic locations covered by the investment program. The objectives of C&P were: (i) disseminate project information; (ii) create awareness among the affected persons (APs) and elicit response from the public; (iii) seek the opinions of the public; and (iv) resolve the potential issues that would affect the common property and religious structures. Different categories of stakeholders have attended in focus group discussions at the village level like the project affected persons (APs) government officials, opinion leaders, among others. Informed and explained to them were the project features, about operational and safety requirements to the people in the locality, concerns and perceptions on the adverse impacts on their property and assets, livelihood, access to public facilities and common property resources, etc. Disclosed during the consultations were the social and environmental impacts and resettlement and rehabilitation issues.
During Project Implementation
Public consultations

Business Opportunities

Consulting Services
Azerishiq will recruit all consulting services to be financed under the Investment Program in compliance with Guidelines on the Use of Consultants (April 2010, as amended from time to time). Consultants will be recruited following the quality- and cost-based selection method using a quality:cost ratio of 90:10.
Procurement
Azerishiq will carry out all procurements to be financed under the Investment Program in compliance with ADB's Procurement Guidelines (April 2010, as amended from time to time). Azerishiq will follow international competitive bidding (ICB) procedure for works contracts estimated to cost the equivalent of US$10 million or more, and goods contracts estimated to cost the equivalent of US$ 500,000 or more. Azerishiq will use national competitive bidding (NCB) procedure for works contracts estimated to cost less than US$10 million and for goods contracts estimated to cost less than US$500,000. ADB's standard bidding documents (SBD) will be used for all procurements.

Contact

Responsible ADB Officer
Tareen, Adnan
Responsible ADB Department
Central and West Asia Department
Responsible ADB Division
Energy Division, CWRD

Timetable

Concept Clearance
04 May 2015
Fact Finding
25 Aug 2015 to 04 Sep 2015
MRM
11 Dec 2015
Approval
12 Jul 2016
Last Review Mission
-
Last PDS Update
08 Nov 2018

Funding

MFF Facility Concept 0091-AZE

Financing Plan
  Total (Amount in US$ million)
Project Cost 1,000.00
ADB 750.00
Counterpart 250.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
AZE: Power Distribution Enhancement Investment Program Advance Notice Archived

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Power Distribution Enhancement Investment Program - Tranche 1: Procurement Plan Procurement Plans Apr 2016